“We again delivered over 20% year-over-year growth in both subscription revenue and total revenue due to strong customer demand for hybrid cloud technologies, including our core technologies, container platforms and solutions that enable and manage multiple cloud and private cloud environments,” stated Jim Whitehurst, President and Chief Executive Officer of Red Hat. “Our growing strategic position within enterprise IT organizations is evidenced by the strong cross selling of our broad portfolio of technologies, which led to 30% year-over-year growth in deals over $1 million and over 40% growth in Application Development-related and other emerging technology subscription revenue.”

“In the third quarter, strong execution contributed to a powerful combination of 22% total revenue growth, 47% GAAP operating income growth, 25% non-GAAP operating income growth, and 18% operating cash flow growth,” stated Eric Shander, Executive Vice President and Chief Financial Officer of Red Hat. “Based on our third quarter results, we anticipate exiting the fiscal year with an annualized run-rate of approximately $3 billion for total revenue.”

Revenue: Total revenue for the quarter was $748 million, up 22% in USD year-over-year, or 20% measured in constant currency. Constant currency references in this release are detailed in the tables below. Subscription revenue for the quarter was $657 million, up 21% in USD year-over-year, or 19% measured in constant currency. Subscription revenue in the quarter was 88% of total revenue.

Subscription Revenue Breakout: Subscription revenue from Infrastructure-related offerings for the quarter was $495 million, an increase of 15% in USD year-over-year, or 14% measured in constant currency. Subscription revenue from Application Development-related and other emerging technology offerings for the quarter was $162 million, an increase of 44% in USD year-over-year, or 42% measured in constant currency.

Operating Income: GAAP operating income for the quarter was $118 million, up 47% year-over-year. After adjusting for non-cash share-based compensation expense, amortization of intangible assets, and transaction costs related to business combinations, non-GAAP operating income for the third quarter was $179 million, up 25% year-over-year. For the third quarter, GAAP operating margin was 15.8% and non-GAAP operating margin was 23.9%. Non-GAAP references in this release are detailed in the tables below.

Net Income: GAAP net income for the quarter was $101 million, or $0.54 per diluted share, compared with $68 million, or $0.37 per diluted share, in the year-ago quarter.

After adjusting for non-cash share-based compensation expense, amortization of intangible assets, transaction costs related to business combinations and non-cash interest expense related to the debt discount, non-GAAP net income for the quarter was $133 million, or $0.73 per diluted share, as compared to $111 million, or $0.61 per diluted share, in the year-ago quarter. Non-GAAP diluted weighted average shares outstanding excludes dilution that is expected to be offset by our convertible note hedge transactions.

Cash: Operating cash flow was $160 million for the third quarter, an increase of 18% on a year-over-year basis. Total cash, cash equivalents and investments as of November 30, 2017 was $2.32 billion after repurchasing approximately $100 million, or 838 thousand shares, of common stock in the third quarter. The remaining balance in the current repurchase authorization as of November 30, 2017 was approximately $399 million.

Deferred revenue: At the end of the third quarter, the company’s total deferred revenue balance was $2.11 billion, an increase of 23% year-over-year. The full year impact to total deferred revenue from changes in foreign exchange rates was $69 million year-over-year. On a constant currency basis, total deferred revenue would have been up 19% year-over-year.

Outlook: Red Hat’s outlook assumes current business conditions and current foreign currency exchange rates.

For the full year:

• Revenue is expected to be approximately $2.906 billion to $2.911 billion in USD.
• GAAP operating margin is expected to be approximately 16.1% and non-GAAP operating margin is expected to be approximately 23.9%.
• Fully diluted GAAP earnings per share (EPS) is expected to be approximately $2.02 per share, assuming 184 million fully diluted shares outstanding. Fully diluted non-GAAP EPS is expected to be approximately $2.88 per share, assuming 181 million fully diluted shares outstanding. Both GAAP and non-GAAP EPS assume a $2 million per quarter forecast for other income and an estimated annual effective tax rate of approximately 27% before discrete tax items. This outlook includes a one-time gain on a strategic investment which benefits GAAP and non-GAAP EPS by $0.05.
• Operating cash flow is expected to be approximately $900 million to $910 million.

For the fourth quarter:

• Revenue is expected to be approximately $758 million to $763 million.
• GAAP operating margin is expected to be approximately 16.7% and non-GAAP operating margin is expected to be approximately 24.6%.
• Fully diluted GAAP EPS is expected to be approximately $0.54 per share, assuming 186 million fully diluted shares outstanding. Fully diluted non-GAAP EPS is expected to be approximately $0.81 per share, assuming 182 million fully diluted shares outstanding. Both GAAP and non-GAAP EPS assume a $2 million forecast for other income and an estimated annual effective tax rate of 27% before discrete tax items. This outlook includes a one-time gain on a strategic investment which benefits GAAP and non-GAAP EPS by $0.05.

GAAP to non-GAAP reconciliation:

Full year non-GAAP operating margin guidance is derived by subtracting the estimated full year impact of non-cash share-based compensation expense of approximately $195 million, amortization of intangible assets of approximately $30 million and transaction costs related to business combinations of approximately $1.3 million. Full year fully diluted non-GAAP EPS guidance is derived by subtracting the expenses listed in the previous sentence and the full year impact of non-cash interest expense related to the debt discount of approximately $20 million and an estimated annual effective tax rate of approximately 27% before discrete tax items. Additionally, full year fully diluted non-GAAP EPS excludes approximately $30 million of discrete tax benefits related to share-based compensation that are included in full year fully diluted GAAP EPS. Full year fully diluted non-GAAP EPS excludes approximately 3 million diluted shares related to the convertible notes which are expected to be offset by our convertible note hedge transactions.

Fourth quarter non-GAAP operating margin guidance is derived by subtracting the estimated impact of non-cash share-based compensation expense of approximately $52 million and amortization of intangible assets of approximately $8 million. Fourth quarter fully diluted non-GAAP EPS guidance is derived by subtracting the expenses listed in the previous sentence and non-cash interest expense related to the debt discount of approximately $5 million and an estimated annual effective tax rate of 27% before discrete tax items. Additionally, fourth quarter fully diluted non-GAAP EPS excludes approximately $1 million of discrete tax benefits related to share-based compensation that are included in fourth quarter fully diluted GAAP EPS. Fourth quarter fully diluted non-GAAP EPS excludes approximately 4 million diluted shares related to the convertible notes which are expected to be offset by our convertible note hedge transactions.

The post Red Hat reports third quarter results for Fiscal Year 2018 appeared first on International Finance.

The GNU General Public License (GPL) and GNU Lesser General Public License (LGPL) are among the most widely-used open source software licenses, covering, among other software, critical parts of the Linux ecosystem. When GPL version 3 (GPLv3) was released, it introduced an express termination approach that offered users opportunities to cure errors in license compliance. This termination policy in GPLv3 provided a more reasonable approach to errors and mistakes, which are often inadvertent. This approach allows for enforcement of license compliance that is consistent with community norms,

To provide greater predictability to users of open source software, Red Hat, Facebook, Google and IBM today each committed to extending the GPLv3 approach for license compliance errors to the software code that each licenses under GPLv2 and LGPLv2.1 and v2.

Michael Cunningham, executive vice president and general counsel, Red Hat:

“We believe in promoting greater fairness and predictability in license enforcement and the growth of participation in the open source community. We encourage other GPLv2 copyright holders to follow our lead.”

Allen Lo, vice president and deputy general counsel, Facebook:

“Open source accelerates the pace of innovation in the world. Extending the good-faith opportunity for developers to correct errors in license compliance has the potential to help move the industry forward and allow engineers to focus on building great things.”

Mark Ringes, assistant general counsel, IBM:

“For many years, General Public License v2 and V3 have guided the development of the world’s largest shared code base, Linux. Extending GPLv3’s non-compliance cure provision to GPLv2 will enable the continued adoption and robust growth of Linux for decades to come. IBM has long been a leading supporter of Linux and open source and assists in the development of the Linux kernel. Deepening our commitment with this assertion is a natural evolution of that support.”

The post Technology industry leaders join forces to increase predictability in Open Source Licensing appeared first on International Finance.

SAP Vora on Red Hat OpenShift Container Platform is a continuation of the strong collaboration between Red Hat and SAP to support a variety of enterprise applications and big data scenarios. Running on Kubernetes clusters and Linux containers powered by OpenShift, SAP Vora provides containerized analytics engines and services and collects big data via Apache Spark, Apache Hadoop, and directly from cloud environments to use for actionable business intelligence. Red Hat OpenShift delivers a scalable platform upon which these capabilities can run, integrating containerized services and SAP Vora resources for a unified, flexible offering.

Key features of the integrated offering include:

• On-demand in-memory big data analytics
• Easier management of big data analytics at scale
• Easier integration of SAP Vora with SAP HANA
• Better support for agile development around big data use cases

SAP Vora provides interactive analytics on stored data from various sources, including traditional storage, Hadoop, and Amazon Simple Storage Service (Amazon S3). It helps enterprises more easily package analysis from disparate data types with a common interface, easy-to-use modeling tools, and access to SAP HANA. This can provide deeper insights based on relevant information from across a business’s big data landscape.

Red Hat OpenShift Container Platform unites developers and IT operations on a single platform to build, deploy, and manage applications consistently across hybrid- and multi-cloud infrastructures. Red Hat OpenShift helps businesses achieve greater value by delivering modern and traditional applications with shorter development cycles and lower operating costs. Red Hat OpenShift is built on open source innovation and industry standards, including Red Hat Enterprise Linux and Kubernetes, and is trusted by companies of all sizes around the world.

Red Hat Developer Program for SAP Software applications
Additionally, to help support the stable, consistent creation of applications using components of SAP HANA and the SAP NetWeaver technology platforms, Red Hat is now making its newly-launched Red Hat Enterprise Linux for SAP Solutions available as part of the Red Hat Developer Program. Accessible through a no-cost subscription, developers can take advantage of the world’s leading enterprise Linux platform to build their next-generation applications for big data workloads.

Red Hat Enterprise Linux for SAP Solutions on IBM Power Systems
To help address customer interest in Red Hat solutions on multiple architectures, Red Hat is also making Red Hat Enterprise Linux for SAP Solutions available on IBM Power Systems. This brings additional flexibility to enterprises seeking to leverage IBM Power architecture within their datacenters while utilizing a single consistent operating system to run intensive big data workloads.

The post Red Hat helps power Big Data’s future with SAP Vora on Red Hat OpenShift Container Platform appeared first on International Finance.

We are keen to spearhead development for technology platforms that can power our future networks, like OpenStack, and are teaming closely with Red Hat to drive innovation in open communities to help shape them in line with real-world requirements.

Christian Gacon, Vice President, Wireline Networks and Infrastructure, Orange, said:

Orange is collaborating with Red Hat as part of a joint engineering program to deliver additional features supporting NFV into OpenStack and other open source communities. The intent of the program is to better address the specific needs of communications service providers and their networks when developing technologies. This community collaboration recently led to the integration of the OpenStack BGP VPN project and its reference implementation (BaGPipe), with Orange as a lead contributor. This BGP VPN project aims at letting telecom operators mutually interconnect Infrastructure-as-a-Service (IaaS) or NFV datacenters and businesses, using industry-standard routing technologies.

Orange is embracing NFV as part of its network transformation strategy, aiming to benefit from greater agility that can be enabled by decoupling its software layer from the hardware stack. To do so, Orange is using Red Hat OpenStack Platform, for its multinational NFV deployment of massively-scalable and agile cloud IaaS, enabling better integration of virtual network functions (VNFs) from a range of vendors.

The post Orange and Red Hat join forces to spearhead network virtualization innovation appeared first on International Finance.

Hundreds of customers rely on Red Hat OpenStack Platform to power their hybrid and private clouds for a variety of mission-critical deployments, including BBVA; Cambridge University; FICO; Massachusetts Open Cloud; Turkcell; IAG; Oak Ridge National Laboratory; Paddy Power Betfair; Produban; UKCloud; and Verizon. And, Red Hat OpenStack Platform is backed by a robust ecosystem of partners, including Cisco, Dell EMC, Intel, Lenovo, Rackspace, and NetApp for enterprise businesses, as well as Ericsson, Nokia, NEC, Huawei, Cisco and others from the telecommunications industry.

Red Hat OpenStack Platform 12 is designed for private or public cloud infrastructure, built on the enterprise-grade backbone of Red Hat Enterprise Linux. Red Hat OpenStack Platform 12 is a tested, certified, and fully-supported version of OpenStack that provides the agility to scale and more quickly meet customer demand without compromising availability, performance, or IT security requirements. Red Hat OpenStack Platform also includes Red Hat CloudForms, Red Hat’s multi-cloud management platform, to provide operational visibility and policy-based management across the Red Hat OpenStack Platform infrastructure and workloads. Additionally, Red Hat OpenStack Platform 12 maintains tight integration with Red Hat Ceph Storage, a highly-scalable block, object, and file storage solution, designed for scale-out clouds.

Containerization of OpenStack services
New to Red Hat OpenStack Platform 12 is the containerization of OpenStack services. In addition to its leadership in OpenStack, Red Hat is a leader in bringing containers to the enterprise and contributing to open source projects that are driving container innovations. In order to help deliver new offerings to market faster, today’s organizations need a cloud infrastructure that can allocate resources more quickly, efficiently, and at scale. Running OpenStack services on Linux containers does just that; it can increase flexibility for upgrades, rollback and service management while reducing cloud management complexity for operators. Additionally, Linux containers make it easier to scale OpenStack services quickly, helping customers meet greater user demand when it counts the most.

Whether deploying a new implementation or performing an automated upgrade through its director tool, Red Hat OpenStack Platform 12 containerizes the majority of OpenStack services, while offering a containerized Technology Preview of certain networking and storage services. This provides our strategic ecosystem partners the opportunity to certify drivers and plugins for this new deployment model, resulting in minimal or no disruption of service for our customers.

Enhanced security
New features in Red Hat OpenStack Platform 12 such as an automated infrastructure enrollment service help organizations increase security and improve efficiency through the automation of life cycle management for security certificates. Others components such as OpenStack Block Storage (Cinder) and Bare Metal Provisioning (Ironic) have updates around volume encryption support and disk partitioning enhancements, respectively. As Red Hat continues to work towards stronger positioning against various risk management initiatives across the globe, Red Hat OpenStack Platform customers will have access to the new Red Hat security guide, available in the Red Hat customer portal, outlining security features, implementation, and guidance for meeting baseline security controls to help enable a more secure OpenStack deployment.

Greater flexibility with composable infrastructure 
Composable roles were first introduced in Red Hat OpenStack Platform 10, which enables operators to create customized profiles for individual services and processes to suit their unique needs. Red Hat OpenStack Platform 11 expanded features for composable roles, making the deployment and upgradability of Red Hat OpenStack Platform more adaptable and consistent. Now, Red Hat OpenStack Platform 12 takes composability a step further with composable networks. In previous versions, users were forced to pick and choose pre-defined network topology. With new composable networks, users have the option to define the network topology they need with fewer constraints. Additionally, operators can create any number of networks they want, including the popular L3 spine and leaf topology, and are no longer limited in quantity of networks. These enhancements make it easier for enterprises to customize OpenStack deployments to fit their specific needs at scale.

Additionally, Red Hat OpenStack 12 now includes support for the Distributed Management Task Force’s (DMTF) Redfish open API for composable infrastructure. Support for this for this new industry specification allows version 12 to interoperate with industry solutions that utilize the Redfish API, such as the Intel® Rack Scale Design (Intel® RSD).

OpenDaylight for network automation
Version 12 extends its technology preview of OpenDaylight, a modular open source platform for customizing and automating a software-defined network. Designed to help our customers gain increased speed and throughput, the advancement of Network function virtualization (NFV) support through OpenDaylight for OpenStack remains a key strategy for Red Hat. The enhancements to our OpenDaylight integration are designed to not only improve the way Data Plane Developer Kit (DPDK) is implemented, but also provide better performance due to its SDN capabilities.

Distributed Continuous Integration
Five releases ago, Red Hat’s Distributed Continuous Integration (DCI) introduced a new method for customers and partners to interact with Red Hat OpenStack Platform. The primary goal of DCI is to help Red Hat ship the best quality OpenStack software in the industry, done by automating the deployment, testing, and feedback loop with customers and partners, for pre- and post-product releases. This allows Red Hat to test real-world use cases, validating each with customer and partner-driven configurations. Today, DCI automatically delivers actionable logs to Red Hat’s quality engineering teams, reducing the amount of time it takes to identify, patch, and introduce fixes back into the community.

Availability
Red Hat OpenStack Platform 12 is scheduled to be available in the near future via the Red Hat Customer Portal and as a component of the Red Hat Cloud Infrastructure and Red Hat Cloud Suite solutions.

Supporting Quotes
Radhesh Balakrishnan, general manager, OpenStack, Red Hat
“To achieve the benefits offered by digital transformation, enterprises need to update their infrastructure to better support the next-generation of applications that take advantage of multiple hardware architectures, Linux container technologies, and cloud computing. Red Hat OpenStack Platform 12 provides a pathway for organizations to accomplish this in a more secure, consumable, and predictable manner while reducing vendor lock-in. The containerization of OpenStack services paired with the enhanced open source security and stability for which Red Hat is known for, offers a production-ready infrastructure for organizations to bring greater agility into their IT operations.”

Kevin Shatzkamer, vice president, Service Provider Solutions, Dell EMC
“Continuing our four years of co-engineering and collaboration on cloud and virtualization solutions, Dell EMC is proud to be a part of the improved features, greater functionality and enhanced robustness of Red Hat OpenStack Platform 12. Combining Dell EMC’s leading-edge infrastructure with the agility of Red Hat OpenStack Platform helps customers better manage their IT environments while creating a platform to drive next generation application development.”

Figen Ulgen, General Manager of Intel Rack Scale Design, Intel
“Intel® Rack Scale Design is an industry-aligned architecture that relies on close collaboration with our ecosystem partners like Red Hat. We’re pleased to see our joint efforts result in this milestone, with the Red Hat OpenStack Platform now including support for DMTF’s Redfish open, standard API. We believe the combination of Red Hat OpenStack Platform with hardware based on Intel RSD will help our customers achieve a new level of agility to meet the demands of a modern, scalable data center.”

Guy Shemesh, VP CloudBand, Nokia
“Red Hat OpenStack Platform provides a scalable, flexible foundation for Nokia CloudBand Infrastructure Software, an open solution with commercially-proven reliability, automation and robust security for deploying network functions in the cloud. Our collaboration has helped make CloudBand an effective customer deployment choice to reduce time-to-revenue for new services. CloudBand also provides automation and optimization to make network operations lean, while making it easier for customers to adopt rapid open-source innovation and avoid vendor lock-in. We’re pleased to continue our long-standing relationship with Red Hat, dating from 2011, to drive carrier-grade OpenStack infrastructure, especially as the technology evolves to encompass Linux containers and other new innovations.”

The post Red Hat improves IT flexibility and reduces complexity with Linux Containers appeared first on International Finance.